corporate

Scientex's 3Q net profit up almost 19 pct from better sales from packaging and property divisions

KUALA LUMPUR: Scientex Bhd's  net profit for the third quarter ended 30 April 2024 (3QFY24) rose almost 19 per cent to RM130.5 million, driven by improved contribution across the packaging and property development divisions.

The packaging manufacturer posted RM109.8 million net profit in the corresponding quarter last year.

Its revenue in the quarter under review rose 11.1 per cent to RM1.1 billion from RM997.1 million previously.

The company also declared an interim dividend of 6 sen per share for the financial year ending 31 July 2024 (FY24), payable on July 19.

According to Scientex, the property division led overall growth in 3QFY24 with segment revenue increasing 24.7 per cent to RM451.1 million compared to RM361.7 million previously, driven by steady construction progress for affordable housing developments across Peninsular Malaysia.

Meanwhile, its packaging division revenue rose 3.4 per cent to RM656.9 million in 3QFY24 from RM635.4 million previously, due to higher exports of industrial and consumer packaging.

As a result, Scientex's net profit in the nine months of financial year 2024 (9MFY24) surged 26.6 per cent to RM409 million from RM323 million, with revenue of RM3.3 billion, 10 per cent higher than RM3 billion.

On prospects, the company said it is committed to sustainable growth, balancing expansion in the affordable housing market with a continued focus on innovation and operational efficiency in its packaging division.

This commitment includes a significant investment in renewable energy with the deployment of a 21MWp rooftop solar photovoltac (PV) system across its headquarters and key manufacturing plants scheduled for completion by January 2025.

Chief executive officer Lim Peng Jin pointed out that the company maintains a balanced approach to growth, accelerating new property launches to meet robust demand while strategically acquiring land to expand affordable housing access across Peninsular Malaysia.

Simultaneously, he said Scientex is enhancing the packaging division's competitiveness through operational excellence, cost optimization, and the development of innovative, customer-centric solutions, including a growing portfolio of sustainable packaging options.

"This multi-faceted approach, supported by continued resilience in both segments, positions us well to achieve sustainable performance in FY24.Scientex's investment in renewable energy, together with our focus on operational efficiency and cost management, enables us to proactively address global market challenges and rising energy costs," he said.

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